Crypto custodian Zodia Custody has secured funding from one of Australia’s largest financial institutions, National Australia Bank (NAB). This move strengthens Zodia Custody’s position in the institutional digital asset custody sector.

Zodia Custody, which is already backed by Standard Chartered, has now received investment from NAB Ventures, the venture capital arm of NAB. This funding adds to previous investments from Standard Chartered, Northern Trust, and SBI Holdings, making Zodia Custody supported by four major financial institutions worldwide.

Amanda Angelini, Managing Director of NAB Ventures, highlighted that their decision to invest in Zodia Custody was influenced by several factors, including the custodian’s innovative approach, institution-grade safety, and strong regulatory compliance. The exact size of the funding was not disclosed.

This investment follows Zodia Custody’s launch of its Australian operations in late 2023, as part of its expansion strategy in the APAC region. Kate Cooper, CEO of Zodia Custody Australia, noted that the investment from NAB is a significant endorsement of their mission and vision.

“But more than that, it signifies a turning point, with institutions and infrastructure providers jointly building the mainstream future of digital assets, without compromise.”

With this new funding, Zodia Custody plans to intensify its efforts in Australia, particularly focusing on onboarding local digital asset exchanges in anticipation of regulatory changes by 2025. CEO Julian Sawyer anticipates that upcoming regulations will significantly alter the landscape, likely including the segregation of assets and requirements to hold them in cold storage. These changes are expected to be similar to those seen in Hong Kong and Japan.

NAB’s investment in Zodia Custody follows the bank’s recent decision to pause its stablecoin development due to a lack of current customer demand. However, a spokesperson for NAB mentioned that the bank can reactivate this work if customer demand emerges.

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